Commoditisation of IT and
                       what the future holds




Good Morning,
I!m here to talk about “commoditi...
Politics

                                     Worth Based
                          Inkjets                     Electroni...
Pond


                                         Ducks




that!s because I have a large pond at home with lots of ducks.
I...
Screenshot from web : http://www.sathnam.com/Features/32/bernard-matthews




... which I can! t stand.

Well that!s me .....
Politics

                                    Worth Based
                         Inkjets                     Electronics...
Screenshot taken from web of the Spice Girls (scary was my favourite!)




these girls were hot, especially the scary one.
Screenshot taken from web http://en.allexperts.com/e/m/mi/michael_j._fox.htm (p.s. it ain’t me)




I was good looking
Screenshot taken from web of a youthful Tony Blair




and labour were novel, exciting and NEW.
My passions at that time w...
Politics

                                     Snowboarding
                         Pepsi                           Elect...
No Pond




At that time I was working in the financial sector and had a big interest
in the concept of commoditisation ......
change from monopolistic
                        to perfect competition




well this is the formal definition “change from...
Yesterday’s         Today’s
                     hot stuff         boredom




Yesterday!s hot stuff becoming todays bored...
Screenshot taken from web of a more recent Tony Blair




unloved.
Just like
Screenshot taken from web at http://www.takingdownwords.com/photos/uncategorized/turkey.jpg




Turkeys.
A good example of...
1890’s




                         Electricity




Back in the 1890!s electricity rocked, it was hot stuff, really really...
1890’s




                        Electricity




Electrical engineers were the spice girls of their time.

It mattered ...
Screenshot taken from web at http://www.sandowplus.co.uk/index2.htm




For your average forward thinking business man, it...
Screenshot taken from web at http://padovacultura.padovanet.it/homepage-6.0/Oliver%20twist%204.JPG




labour with shiny n...
1930’s
                         1890’s




                                            National
                       Ele...
Ubiquitous
                      Rare thing
                                          Distributed




and this is one view...
Ubiquitous
                      Rare thing
                                          Distributed



                     ...
Ubiquitous
                       Rare thing
                                           Distributed




                  ...
Screenshot taken from web at http://www.adverblog.com/archives/002364.htm




were hot, the spice girls of our time - obvi...
Yahoo & webcrawler & Cam CL, waybackwhen, 1996




this.

We made a strategic difference, created competitive advantage wh...
Screenshots taken from web at http://www.strassmann.com/




Until Paul Strassman pointed out that we didn!t.

Apparently ...
Screenshots taken from web at http://www.flickr.com/photos/79155248@N00/59880012/




like an e-commerce site

then of cour...
Screenshots taken from web at http://xsetera.com/MY_SPACE/Picturz/Kitten%20Gun.bmp




followed suit.

and if you weren!t ...
Modified screenshot taken from web




you had problems.
Leading   Standard   Utility
                      New Thing
                          thing
                             ...
Leading   Standard   Utility
                    New Thing
                        thing
                                 ...
Leading   Standard   Utility
                         New Thing
                             thing
                       ...
Leading   Standard   Utility
                      New Thing
                          thing
                             ...
Leading   Standard    Utility
                        New Thing
                            thing
                        ...
Leading   Standard   Utility
                        New Thing
                                      Edge    Products   Se...
Trends


                          software as a service

                            utility computing




the trends tod...
Web 2.0




Even the term web 2.0 implies that THERE are things which are
Web 1.0




web 1.0 - old hat, common.
Screenshot taken from web at http://www.adverblog.com/archives/002364.htm




You can!t turn up today and want oodles of c...
to build
companies want to pay for the novel and new.
 Everything common is just a cost of doing business and they want
that ...
Screenshot taken from web at http://www.pda.org.uk/leaflets/15/no15-print.htm




cheap as chips.
So what should be cheap a...
Screenshot taken from web at http://en.wikipedia.org/wiki/Server_farm




There is NO competitive advantage in having your...
...Yak Shaving.
It doesn!t make sense to do the same things over and over, pay for
things which you don!t use and to have ...
Amazon EC2,
                               Ning




This is what they are doing with Amazon!s EC2.
Zimki




and why we launched Zimki - a utility computing service.
Build what you like online in JavaScript
From a wiki, to a web site, to search, to a blog.
Do this without ever going near...
pay for it as you consume our computing cloud.
Of course, you still have the old concern about lock-in to a hosting
vendor.
Open Source
                                 HTTP Server

                           XML Server

                         ...
Your Application




So you can run your application on our environment, or another
environment from a grid of Zimki provi...
Your Application




Using the electricity analogy again, think of these providers as power
stations in a national grid,
Your          Your          Your          Your
                             Application   Application   Application   Appl...
Your          Your          Your          Your          Your          Your          Your          Your          Your
     ...
Modified screenshot taken from web




is good for ducks.

So in summary, commoditisation is a growing trend and if you!re ...
Screenshots taken from web at http://xsetera.com/MY_SPACE/Picturz/Kitten%20Gun.bmp




There are several different environ...
If you want to build stuff in JavaScript, online, without the headaches of
servers, databases, hosting arrangements etc.
and if you only want to pay for what you actually consume
Screenshot taken from web at http://www.pda.org.uk/leaflets/15/no15-print.htm




and if you want it cheap as chips in any ...
Zimki




then come and chat with us.
Zimki
                        The home of pre-shaved Yaks




our Yaks are all pre-shaved.
unlike our team.
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Simon Wardley @ FOWA Feb 07

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Simon Wardley of Fotango speaking at Future of Web Apps in London, February 2007.

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Simon Wardley @ FOWA Feb 07

  1. 1. Commoditisation of IT and what the future holds Good Morning, I!m here to talk about “commoditisation of IT” and future stuff. LET ME FIRST INTRODUCE MYSELF - my name is Simon Wardley and in homage to web 2.0 and for those of you who don!t know me - I!ve made a tag cloud of ...
  2. 2. Politics Worth Based Inkjets Electronics Commoditisation Genetics Ducks Maths Programming Patents Football Fotango People Printing Freedom Open Source Javascript Archery XP my passions. If you look carefully, you may notice that I like ducks.
  3. 3. Pond Ducks that!s because I have a large pond at home with lots of ducks. I think ducks are great, unlike turkeys ...
  4. 4. Screenshot from web : http://www.sathnam.com/Features/32/bernard-matthews ... which I can! t stand. Well that!s me .. so onto the subject at hand which is ....
  5. 5. Politics Worth Based Inkjets Electronics Commoditisation Genetics Ducks Maths Programming Patents Football Fotango People Printing Freedom Open Source Javascript Archery XP Commoditisation Now to understand why I think this is an important story, I need to take you ON a TRIP BACK in TIME to 1997. To set the scene, for those of you who can!t quite remember, back then
  6. 6. Screenshot taken from web of the Spice Girls (scary was my favourite!) these girls were hot, especially the scary one.
  7. 7. Screenshot taken from web http://en.allexperts.com/e/m/mi/michael_j._fox.htm (p.s. it ain’t me) I was good looking
  8. 8. Screenshot taken from web of a youthful Tony Blair and labour were novel, exciting and NEW. My passions at that time were ...
  9. 9. Politics Snowboarding Pepsi Electronics Commoditisation Genetics Databases Maths Microsoft Programming Patents Acting Business theory Football Security People Judo Freedom Trading Bridge Cars C++ XP Archery roughly the same bar one obvious missing item
  10. 10. No Pond At that time I was working in the financial sector and had a big interest in the concept of commoditisation ... so what is that?
  11. 11. change from monopolistic to perfect competition well this is the formal definition “change from monopolistic to perfect competition”... however I prefer in plain old english
  12. 12. Yesterday’s Today’s hot stuff boredom Yesterday!s hot stuff becoming todays boredom or alternatively how novel, exciting and new becomes taken for granted, uninteresting and
  13. 13. Screenshot taken from web of a more recent Tony Blair unloved. Just like
  14. 14. Screenshot taken from web at http://www.takingdownwords.com/photos/uncategorized/turkey.jpg Turkeys. A good example of this is electricity.
  15. 15. 1890’s Electricity Back in the 1890!s electricity rocked, it was hot stuff, really really hot stuff.
  16. 16. 1890’s Electricity Electrical engineers were the spice girls of their time. It mattered ...
  17. 17. Screenshot taken from web at http://www.sandowplus.co.uk/index2.htm For your average forward thinking business man, it provided new competitive opportunities. You could replace expensive
  18. 18. Screenshot taken from web at http://padovacultura.padovanet.it/homepage-6.0/Oliver%20twist%204.JPG labour with shiny new machines powered by electricity.
  19. 19. 1930’s 1890’s National Electricity Grid by the 1930!s we had the national grid - most companies had electricity, it was becoming common.
  20. 20. Ubiquitous Rare thing Distributed and this is one view of how commoditisation works - something novel and new become something common. and this creates opportunity, for example With easily available power, data processing and communication you can have google.
  21. 21. Ubiquitous Rare thing Distributed Competitive Advantage When something is novel and new, it is described as a source of competitive advantage.
  22. 22. Ubiquitous Rare thing Distributed Cost of doing business When it is common it is described as cost of doing business. Now in the 1990!s - web sites were novel and new. So us web designers
  23. 23. Screenshot taken from web at http://www.adverblog.com/archives/002364.htm were hot, the spice girls of our time - obviously along with the spice girls. There were lots of us getting paid oodles of cash for building things like
  24. 24. Yahoo & webcrawler & Cam CL, waybackwhen, 1996 this. We made a strategic difference, created competitive advantage which was great,
  25. 25. Screenshots taken from web at http://www.strassmann.com/ Until Paul Strassman pointed out that we didn!t. Apparently all that was happening was one big arms race with companies wanting ever bigger and better IT than competitors. And of course everytime a company got some new big gun
  26. 26. Screenshots taken from web at http://www.flickr.com/photos/79155248@N00/59880012/ like an e-commerce site then of course, all it!s competitors
  27. 27. Screenshots taken from web at http://xsetera.com/MY_SPACE/Picturz/Kitten%20Gun.bmp followed suit. and if you weren!t armed ...
  28. 28. Modified screenshot taken from web you had problems.
  29. 29. Leading Standard Utility New Thing thing Edge Products Service anyway that!s how commoditisation works.
  30. 30. Leading Standard Utility New Thing thing Edge Products Service Blog Someone invents something new
  31. 31. Leading Standard Utility New Thing thing Edge Products Service Consultants If it is useful everyone copies it
  32. 32. Leading Standard Utility New Thing thing Edge Products Service Moveable Type until someone releases a product
  33. 33. Leading Standard Utility New Thing thing Edge Products Service Typepad and then finally you have utility hosted services.
  34. 34. Leading Standard Utility New Thing Edge Products Service There is a constant move towards commoditisation, a constant shift from novel & new to commonplace. Much of IT is no longer strategic, it!s a cost of doing business. In much the same way that using electricity is not a strategic choice - it!s just a cost of doing business. So let!s come back to the modern day ...
  35. 35. Trends software as a service utility computing the trends today are about commoditisation software as a service utility computing
  36. 36. Web 2.0 Even the term web 2.0 implies that THERE are things which are
  37. 37. Web 1.0 web 1.0 - old hat, common.
  38. 38. Screenshot taken from web at http://www.adverblog.com/archives/002364.htm You can!t turn up today and want oodles of cash to build what we used
  39. 39. to build
  40. 40. companies want to pay for the novel and new. Everything common is just a cost of doing business and they want that ...
  41. 41. Screenshot taken from web at http://www.pda.org.uk/leaflets/15/no15-print.htm cheap as chips. So what should be cheap as chips? Where can we make cost savings? Operating environments are a good place to start.
  42. 42. Screenshot taken from web at http://en.wikipedia.org/wiki/Server_farm There is NO competitive advantage in having your own web infrastructure, they are as common as muck. There is no advantage in setting up a database or a web server or any of the hundreds of common things which we do every time we build a new site There is a phrase for this repetitive muck - it!s known as
  43. 43. ...Yak Shaving. It doesn!t make sense to do the same things over and over, pay for things which you don!t use and to have everyone planning for capacity spikes. It!s wasteful. What is needed is an environment where you can build and release what you want and pay for what you use.
  44. 44. Amazon EC2, Ning This is what they are doing with Amazon!s EC2.
  45. 45. Zimki and why we launched Zimki - a utility computing service.
  46. 46. Build what you like online in JavaScript From a wiki, to a web site, to search, to a blog. Do this without ever going near a server, database or hosting arrangement. Just develop and release or even copy a clonable application.
  47. 47. pay for it as you consume our computing cloud. Of course, you still have the old concern about lock-in to a hosting vendor.
  48. 48. Open Source HTTP Server XML Server Zimki API SpiderMonkey Zimki Object Store that!s why later this year we are open sourcing EVERYTHING.
  49. 49. Your Application So you can run your application on our environment, or another environment from a grid of Zimki providers. You can switch environments easily, you can build your own, you can even sell spare computing resource back into the grid.
  50. 50. Your Application Using the electricity analogy again, think of these providers as power stations in a national grid,
  51. 51. Your Your Your Your Application Application Application Application Your Your Your Your Application Application Application Application Your Your Your Your Application Application Application Application with thousands of users paying for the resources they actually consume. It!s about balancing supply and demand in a much better way than ...
  52. 52. Your Your Your Your Your Your Your Your Your Application Application Application Application Application Application Application Application Application Your Your Your Your Your Your Your Your Your Application Application Application Application Application Application Application Application Application Your Your Your Your Your Your Your Your Your Application Application Application Application Application Application Application Application Application the current situation, where every company seems to have their own massively under utilised hosting centre. There is an awful lot of waste here. Now where there is waste, there is opportunity - not only financial but also environmental, which
  53. 53. Modified screenshot taken from web is good for ducks. So in summary, commoditisation is a growing trend and if you!re not looking at it you can bet your competitors are
  54. 54. Screenshots taken from web at http://xsetera.com/MY_SPACE/Picturz/Kitten%20Gun.bmp There are several different environments being created but
  55. 55. If you want to build stuff in JavaScript, online, without the headaches of servers, databases, hosting arrangements etc.
  56. 56. and if you only want to pay for what you actually consume
  57. 57. Screenshot taken from web at http://www.pda.org.uk/leaflets/15/no15-print.htm and if you want it cheap as chips in any case
  58. 58. Zimki then come and chat with us.
  59. 59. Zimki The home of pre-shaved Yaks our Yaks are all pre-shaved.
  60. 60. unlike our team.

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